Saudi Arabia VAT Accounting Requirement
Invoicing and accounting software to stay VAT compliant.
بسيطة الفواتير ثنائية اللغة البرمجيات لضريبة القيمة المضافة
Saudi Arabia’s VAT Accounting requirement requires that the invoices, books of accounts, records and any accounting documents to be maintained by a taxable person must be kept safe for a minimum period of 6 years from the end of the tax period to which they relate.
Also, VAT accounting records related to moveable tangible capital assets or intangible capital assets must be kept for at least 6 years and 10 years in case of immovable capital assets, i.e., minimum of the adjustment period for these assets plus 5 years from the date those assets are acquired by the person. Please note, the records must be kept in Arabic.
The GAZT personnel may request and call for these records by notifying the taxable person and ensuring a reasonable time to submit the additional records.
Bill or invoices that are issued must be printed in Arabic and maintained in a hard copy for a period of at least two months. Also, these records must be kept in the KSA either physically or through an access to the relevant server where these records are stored.
In cases the taxable person opts to store the records electronically, a few conditions needs to be met, specifically, the system or server must be physically located in Saudi and whenever and to the extent practicably possible data shall be entered into the system in the Arabic language and shall be an identical copy of books.
The Authority may review electronically the systems and programs applied by the taxable person to prepare its computerized accounts. The taxable person may appoint a third party to comply with the record storage requirements but remains responsible for such compliance.
A taxable person who has a fixed establishment in the KSA may have its central computer outside of the KSA, provided it has with a terminal at the subsidiary in the KSA through which all data and entries regarding the account of the fixed establishment in the KSA can be accessed.
The tax representative of a non-resident person with no establishment in the KSA is required to maintain the invoices, books, records and accounting documents of the non-resident person. The right of the Authority remains reserved to request additional records due to the registration, examination and assessment procedures in cases where the Authority considers it necessary by justifiable grounds.
Also, VAT accounting records related to moveable tangible capital assets or intangible capital assets must be kept for at least 6 years and 10 years in case of immovable capital assets, i.e., minimum of the adjustment period for these assets plus 5 years from the date those assets are acquired by the person. Please note, the records must be kept in Arabic.
The GAZT personnel may request and call for these records by notifying the taxable person and ensuring a reasonable time to submit the additional records.
Bill or invoices that are issued must be printed in Arabic and maintained in a hard copy for a period of at least two months. Also, these records must be kept in the KSA either physically or through an access to the relevant server where these records are stored.
In cases the taxable person opts to store the records electronically, a few conditions needs to be met, specifically, the system or server must be physically located in Saudi and whenever and to the extent practicably possible data shall be entered into the system in the Arabic language and shall be an identical copy of books.
The Authority may review electronically the systems and programs applied by the taxable person to prepare its computerized accounts. The taxable person may appoint a third party to comply with the record storage requirements but remains responsible for such compliance.
A taxable person who has a fixed establishment in the KSA may have its central computer outside of the KSA, provided it has with a terminal at the subsidiary in the KSA through which all data and entries regarding the account of the fixed establishment in the KSA can be accessed.
The tax representative of a non-resident person with no establishment in the KSA is required to maintain the invoices, books, records and accounting documents of the non-resident person. The right of the Authority remains reserved to request additional records due to the registration, examination and assessment procedures in cases where the Authority considers it necessary by justifiable grounds.